AURIZON ACQUISITION CLEARS HURDLE
Written on the 29 May 2014
THE joint bid between Aurizon Holdings Limited (ASX:AZJ) and Baosteel Resources to acquire Aquila Resources Limited, is one step closer after meeting regulations.
Both companies received confirmation letters from the Foreign Investment Review Board (FIRB) indicating no objections to the purchase.
AZJ managing director and CEO Lance Hockridge has welcomed the approval, saying it paves the way for economic investment.
“The offer is the first step in a potential pathway to co-investment in resources and greenfield infrastructure, representing a great opportunity to co-develop world-class rail and port infrastructure in Australia – and in the process generate new jobs, boost national exports and deliver to government significant royalty revenue,” he says.
The freight operator and the China-based resources company will purchase 100 per cent of Aquila shares at $3.40 each.
Baosteel chairman Zhihao Dai says he is pleased the conditionality associated with the deal has been reduced.
“Our compelling offer provides Aquila shareholders with an opportunity to realise certain value for their Aquila shares at a significant premium to the Aquila share price prior to the announcement of the offer.
“At the same time, Baosteel believes the transaction, if successful, provides a genuine opportunity for the development of greenfield resources for the benefit of both Australia and China,” he says.
The offer remains subject to a 50 per cent minimum acceptance condition and customary conditions lodged with ASIC.
There are no Chinese approvals or funding conditions required to be met.
Read more about the joint take-over here.